Auto Repairs and Insurance Georgia GA

Reader’s Question:

How does my auto insurance company here in Georgia determine the value of my car if it gets totaled? What would happen next?

Stephanie

Atlanta, GA

Well, I hope nobody ever gets in an accident wherein the car gets totaled. That’s not right. Now, if somebody does get in an accident and the car is declared totaled by the auto insurance company in Georgia, it means that the repair cost is actually higher than the actual value of the car. Some auto insurance companies declare a car totaled if the repair cost exceeds eighty percent of the car’s actual price. You might have to check the exact figure with your auto insurance agent.

After your car is declared totaled, the auto insurance company will now proceed to find out how much the car costs. To find out the actual cash value of your car, they will look for the same model of your car and check its price tag. They will not check the original price of the car, no use hoping for that. The car price will be the actual cash value. Meaning, after they get the original price of the car, depreciation will be deducted from its value. The auto insurance company will consult with local auto dealers and part dealers. They’d check if they sell the same make and model as your wrecked car and see its present value.

Tags: auto insurance, car insurance, car insurance agent, Car Insurance Company